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American Focus > Blog > Health and Wellness > Cash transfers boost health in low- and middle-income countries, data reveal
Health and Wellness

Cash transfers boost health in low- and middle-income countries, data reveal

Last updated: November 10, 2025 4:00 pm
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Cash transfers boost health in low- and middle-income countries, data reveal
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Government-led cash transfer programs have been shown to drive significant improvements in health outcomes across low- and middle-income countries (LMICs), according to a recent study published in The Lancet by researchers at the University of Pennsylvania Perelman School of Medicine. The study analyzed data from over two million live births and nearly one million children under the age of five in 37 LMICs between 2000 and 2019, with 20 of these countries implementing large-scale cash transfer programs.

The findings revealed that when governments provided cash through these programs, more women received early pregnancy care, more babies were born in health facilities, and more births were attended by trained health workers. Women were also able to plan pregnancies as they wished and access birth control when needed. Cash transfer programs that reached a larger share of the population had the most significant impact on improving health outcomes.

Previous research by the same team published in Nature showed that these cash transfer programs also led to substantial reductions in mortality rates among women and children. The study highlights the broad health benefits that these programs can deliver and emphasizes the importance of considering such approaches as basic or guaranteed incomes in the future.

In addition to maternal health improvements, the study found that children in countries with cash transfer programs were more likely to be exclusively breastfed, have access to healthy food, and receive measles vaccinations. These programs also contributed to lower rates of childhood diarrhea and underweight children, showcasing population-wide health benefits.

With more than 20% of the global population living on less than $3.65 a day and an estimated 700 million people surviving on less than $2.15 per day, the impact of cash transfer programs on health outcomes is crucial. The COVID-19 pandemic has exacerbated poverty levels, with projections suggesting that nearly 50 million people worldwide could fall into extreme poverty by 2030. The study’s findings underscore the importance of expanding cash transfer programs to support families in LMICs and potentially in high-income countries as well.

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As debates around social safety net programs continue, the research provides policymakers with valuable data to inform decisions on how best to support vulnerable populations. Cash transfer programs have shown to benefit not only mothers but also their children, leading to a wide range of health improvements. The evidence presented in the study strengthens the case for expanding the coverage of cash transfer programs to promote better health outcomes globally.

For more information, the study published in The Lancet can be accessed at www.thelancet.com. The research was conducted by the Perelman School of Medicine at the University of Pennsylvania, providing valuable insights into the impact of cash transfer programs on health in LMICs and beyond.

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